In November, the prices of Agar-Agar exhibited a mixed pricing trend globally. While notable declines were observed in key markets such as Japan and China, prices in India demonstrated a contrasting upward trajectory, reflecting regional variations in supply and demand dynamics.

The decline in Agar-Agar prices in China is attributed to several factors, with a stable supply and cautious market sentiment playing key roles. Data from China's National Bureau of Statistics (NBS) revealed a slight improvement in the country's manufacturing Purchasing Managers' Index (PMI), rising to 50.3 in November from 50.1 in October. This suggested steady growth in the manufacturing sector but also contributed to maintaining a sufficient supply of Agar-Agar, which led to price pressure. Subdued industrial activity further dampened demand, as end-users adopted cautious procurement strategies amid broader economic uncertainties. Additionally, the recovery in seaweed harvesting stabilized the availability of raw materials like Gracilaria, which is essential for Agar-Agar production, reinforcing the downward price trend. As the seaweed farming season typically begins in October, and the harvest taking 40 to 60 days, this seasonal cycle contributed to the steady supply, ensuring consistent availability of raw material for Agar-Agar production.

Similarly, in Japan, the significant drop in Agar-Agar prices was driven by a combination of factors, including ample inventories and weakened demand from key sectors such as food and pharmaceuticals. With sufficient stockpiles in the market, the pressure on prices increased as demand from these sectors remained subdued. Additionally, the easing of ocean freight rates played a crucial role in reducing the overall cost of imported Agar-Agar, further contributing to the price decline. Another important factor was the appreciation of the yen against the USD in November, which made imports cheaper. As a result, the reduced import costs were passed on to consumers, leading to lower Agar-Agar prices in the domestic market

Conversely, the Indian market for Agar-Agar saw prices rising throughout November. Firstly, the slowdown in manufacturing activity created a tighter supply environment, contributing to upward price pressure. Despite this slowdown, international demand for Agar-Agar surged, as indicated by a four-month high in new export orders, strengthening the upward price trend. The robust demand from key sectors such as confectionery, dairy, and pharmaceuticals further fueled this rise, with particular demand spikes driven by the wedding season and festive celebrations. These cultural events heightened the need for Agar-Agar, reinforcing the price surge.

As per ChemAnalyst analysis, Agar-Agar prices are expected to remain under pressure in key markets like China and Japan due to stable supply conditions and cautious demand. In contrast, the Indian market is likely to see continued price increases driven by strong domestic and international demand, with seasonal events further fueling demand for Agar-Agar.